COLONIAL INTERMEDIATE HIGH INCOME FUND Semiannual Report

April 30, 2002

President's Message

Dear Shareholder:

During the six-month reporting period that ended on April 30, 2002, the economic climate began to shift. During this time it became apparent that a recession had been underway since the first quarter of 2001. However, there were also signs that the economy was stabilizing.

With generally solid levels of consumer spending, the gross domestic product (GDP) that measures the output of US goods and services rose at an annualized rate of 1.70% in the fourth quarter of 2001. This followed a 1.3% decline in growth for the third quarter. Although business demand had not started to recover, companies began to rebuild their inventories in the first quarter of 2002. This helped raise GDP growth to a rate of 5.8%. The annual rate of inflation remained relatively low during the six-month period – hovering between 1.5% and 2.0%.

Company earnings were slow to improve, and layoffs continued at many firms, which raised questions about the timing and depth of a full recovery. This uncertainty, combined with widening concern about corporate accounting procedures in the wake of Enron's bankruptcy, kept stock prices volatile over the period. With many large daily swings in the market, the Standard & Poor's 500 Index returned 2.31% during the reporting period.

In this environment, the Federal Reserve slowed its cuts in short-term interest rates. After imposing rate cuts totaling 3.75 percentage points from January through October of 2001, the Fed trimmed rates a total of 0.75 percentage points in November and December. In March of 2002 the Fed assumed a neutral monetary position.

As investors began to anticipate an eventual increase in short-term rates, the yields for bonds generally rose, and their prices fell. Having significantly underperformed Treasury securities when the economic outlook was deteriorating, high-yield corporate bonds outperformed as the economy seemed to bottom. Although credit downgrades rose, defaults by issuers – while still high by historic standards – began to decline.

During the reporting period, portfolio managers Scott Richards and Greg Smalley adopted a more defensive investment strategy – increasing positions in areas like health care that could be less vulnerable to continued concerns about the economy and decreasing positions in more economically sensitive industries like cable and telecommunications. In addition, they weeded out investments whose financial reporting practices might concern investors. You will find additional details about the fund's investment strategy in the pages that follow.

Sincerely,

Keith T. Banks
President
Colonial Management Associates, Inc.

Economic and market conditions change frequently. There is no assurance that trends described herein will continue or commence.

Not FDIC Insured	May Lose Value
	No Bank Guarantee

Portfolio Managers' Report

	Top corporate issuers as of 4/30/02(%)
	Charter Communications		2.7
	CSC Holdings		2.5
	Allied Waste North America		2.4
	Premier International Foods		1.6
	CMS Energy		1.5
	Magellan Health Services		1.4
	Sovereign Bancorp		1.3
	EchoStar		1.3
	Tekni-Plex		1.3
	Telewest Communications		1.2

			Corporate issuers are calculated as a percentage of total investments including short-term investments. Because the fund is actively managed, there can be no guarantee the fund will continue to hold securities of these issuers in the future.

	6-month distributions declared per share 11/1/01–4/30/02		$0.21

	6-month total returns, assuming reinvestment of all distributions
	NAV		6.51
	Market price		6.51

	Price per share on 4/30/02
	NAV		$3.53
	Market price		$3.51

For the six months ended April 30, 2002, Colonial Intermediate High Income Fund earned a total return of 6.51% at net asset value (NAV). The fund's return lagged the average total return for funds in the Lipper High Current Yield (Leveraged) category, which was 9.80% over the same time.

A more defensive stance

The fund's underperformance versus its Lipper group was primarily the result of continued disappointments from investments in the telecommunications and cable sectors. Although we reduced the fund's positions in those areas, our investments there remained a significant drag on returns. Among the positions we trimmed were NTL, because of uncertainty regarding its valuation following a financial restructuring, and Adelphia Communications (0.3% of net assets), because of concerns about the company's liabilities and financial reporting practices.¹

¹Holdings are disclosed as of April 30, 2002, and are subject to change.

At the same time, the fund benefited from several "special situations" in which significant improvements in a company's prospects helped to boost the performance of its bonds. One example was Advanstar Communications (0.6% of net assets), a publisher and trade show management firm that investors had shunned because of concerns that the terrorist attacks of September 11 would greatly diminish trade show profitability. As economic conditions improved, Advanstar again found favor with investors.

Increased exposure to several better-performing sectors further enhanced the fund's returns. Among these sectors was the health care group, which we believe should continue to attract investors even if economic concerns reemerge. We also added investments in the housing sector, including several companies with higher average quality credit ratings.

The gaming and leisure group was another area where increased exposure benefited the fund's performance. In addition to increasing investments in a broad range of existing holdings in this sector, we initiated a position in Host Marriott (1.2% of net assets). Because of concerns about a decline in hotel demand after the events of September 11, we were able to purchase the firm's newly issued debt at an attractive price and yield. We believe that as a strong operator in the lodging industry, with a long history of good management, Marriott should enjoy solid growth over time.

We also maintained the fund's position in Pennzoil-Quaker State (0.7% of net assets), a leading producer of consumer products in the automotive sector. In addition to its recent acquisition by the Royal Dutch/Shell Group, we expect Pennzoil to benefit from its strong operational record and established brand name.

Maintaining a bottom-up investment strategy

As the economic recovery continues to unfold, we believe that high-yield bonds will benefit from broader improvements in corporate earnings,

1

further reductions in issuer defaults, and an increase in credit upgrades. While we believe that most of the downturn is probably behind us, it remains unclear how long the economy will languish before a definitive recovery takes hold.

Under these conditions, we continue to move toward a more defensive investment strategy – increasing positions in better-quality bonds (those with BB credit ratings). We are also maintaining an emphasis on individual positions in asset-rich companies with strong market niches and improving fundamentals. In recent months this strategy has led us to increase holdings in sectors that may be early beneficiaries of a full recovery – such as the housing and automotive industries. Going forward we may look for opportunities in industries with greater economic sensitivity, including the depressed telecommunications sector.

	Scott B. Richards		Gregg Smalley

Scott B. Richards and Gregg Smalley co-manage the portfolio of Colonial Intermediate High Income Fund. Mr. Richards is a senior vice president of Colonial Management Associates. Mr. Smalley is a vice president of Colonial Management Associates.

Colonial Intermediate High Income Fund vs. Lipper High Current Yield
Funds (Leveraged) Category Average
10/31/01 — 4/30/02

High-yield investing offers the potential for high income and attractive total returns, but also involves certain risks. These include credit risks associated with lower-rated bonds, changes in interest rates, and certain risks associated with foreign investments. Investing in high-yield bonds involves greater credit risk and other risks not associated with investing in higher quality bonds. Bond investing also involves interest rate risk, which means that bond prices may change as interest rates increase or decrease. Foreign investments involve market risk, political, accounting, and currency risks not associated with domestic investments.

Past performance cannot predict future results. The returns and value of an investment may vary, resulting in a gain or loss on sale. All results shown assume reinvestment of distributions.

Returns are computed at net asset value.

Lipper, Inc., a widely respected data provider, calculates an average total return for mutual funds with similar investment objectives.

2

Investment Portfolio

April 30, 2002 (Unaudited)

Corporate Fixed Income Bonds & Notes - 129.5%		Par		Value
Construction – 2.7%
Building Construction – 2.7%
Associated Materials, Inc.,       9.750% 04/15/12		$   150,000		$       153,750
Atrium Companies, Inc.,       10.500% 05/01/09		210,000		212,100
KB Home,       8.625% 12/15/08		490,000		490,000
Ryland Group,       9.125% 06/15/11		375,000		395,625
Standard Pacific Corp.,       9.250% 04/15/12		740,000		754,800
				2,006,275

FINANCE, INSURANCE & REAL ESTATE – 7.1%
Depository Institutions – 1.8%
Sovereign Bancorp, Inc.,       10.500% 11/15/06		1,180,000		1,310,107
Financial Services – 2.2%
Beaver Valley Funding Corp.,       9.000% 06/01/17		590,000		647,395
Yell Finance BV,       10.750% 08/01/11		900,000		974,250
				1,621,645
Real Estate – 3.1%
D.R. Horton, Inc.,       9.750% 09/15/10		955,000		1,000,363
K. Hovnanian Enterprises:       8.875% 04/01/12 (a)		170,000		166,600
10.500% 10/01/07		560,000		610,400
Lennar Corp.,       7.625% 03/01/09		525,000		526,312
				2,303,675

MANUFACTURING – 36.4%
Chemicals & Allied Products – 7.9%
Acetex Corp.,       10.875% 08/01/09		275,000		284,625
Avecia Group PLC,       11.000% 07/01/09		340,000		353,600
Huntsman ICI Holdings L.L.C.,       (b) 12/31/09		3,975,000		1,013,625
Lyondell Chemical Co.,       9.625% 05/01/07		450,000		447,187
MacDermid, Inc.,       9.125% 07/15/11		375,000		397,500
Messer Griesheim Holding,       10.375% 06/01/11 (a)(c)		600,000		583,362
Om Group, Inc.,       9.250% 12/15/11 (a)		$   360,000		$       372,600
Sterling Chemicals, Inc.,       11.750% 08/15/06 (d)		1,875,000		225,000
Terra Capital, Inc.,       12.875% 10/15/08 (a)		775,000		790,500
Terra Industries, Inc.,       10.500% 06/15/05		360,000		309,600
Texas Petrochemical Corp.,       11.125% 07/01/06		1,125,000		990,000
				5,767,599
Electronic & Electrical Equipment – 3.1%
Amphenol Corp.,       9.875% 05/15/07		735,000		771,750
Flextronics International Ltd.,       9.875% 07/01/10 (a)		600,000		646,500
TransDigm, Inc.,       10.375% 12/01/08		850,000		841,500
				2,259,750
Fabricated Metal – 1.8%
Earle M. Jorgensen & Co.,       9.500% 04/01/05		570,000		552,900
Euramax International PLC,       11.250% 10/01/06		750,000		738,750
				1,291,650
Food & Kindred Products – 4.8%
Constellation Brands, Inc.,       8.125% 01/15/12		270,000		275,400
Del Monte Corp.,       9.250% 05/15/11		500,000		525,000
Dole Foods,       7.250% 05/01/09 (a)		250,000		249,258
JohnsonDiversey, Inc.,       9.625% 05/15/12 (a)		500,000		520,000
New World Pasta Co.,       9.250% 02/15/09		275,000		266,750
Premier International Foods PLC,       12.000% 09/01/09		1,500,000		1,650,000
				3,486,408
Furniture & Fixtures – 0.8%
Juno Lighting, Inc.,       11.875% 07/01/09		600,000		627,000
Machinery & Computer Equipment – 0.3%
Sequa Corp.,       8.875% 04/01/08		200,000		201,000
Measuring & Analyzing Instruments – 0.5%
Fisher Scientific International, Inc.,       8.125% 05/01/12 (a)		375,000		375,938

See notes to investment portfolio.

3

Investment Portfolio (continued)

April 30, 2002 (Unaudited)

Corporate Fixed Income Bonds & Notes (continued)		Par		Value
MANUFACTURING (continued)
Miscellaneous Manufacturing – 6.7%
Actuant Corp.,       13.000% 05/01/09		$   351,000		$       400,140
Agco Corp.,      9.500% 05/01/08		400,000		432,000
Flowserve Corp.,       12.250% 08/15/10 (a)		361,000		409,735
ISG Resources, Inc.,       10.000% 04/15/08		1,000,000		935,000
Koppers Industries, Inc.,       9.875% 12/01/07		725,000		734,062
Newcor, Inc.,       9.875% 03/01/08 (d)		1,170,000		163,800
Owens-Illinois, Inc.,       7.500% 05/15/10		600,000		546,000
Tekni-Plex, Inc.,       12.750% 06/15/10		1,230,000		1,279,200
				4,899,937
Paper Products – 1.2%
Corp Durango SA de CV,       13.125% 08/01/06		525,000		529,594
Tembec Industries, Inc.,       8.500% 02/01/11		350,000		364,000
				893,594
Petroleum Refining – 0.7%
Pennzoil-Quaker State,       10.000% 11/01/08 (a)		460,000		535,900
Pollution Control – 0.4%
EnviroSource, Inc.,       14.000% 12/15/08		363,648		290,918
Primary Metal – 2.3%
Bayou Steel Corp.,       9.500% 05/15/08		1,000,000		590,000
Kaiser Aluminum & Chemical Corp.,       10.875% 10/15/06		880,000		695,200
Renco Metals, Inc.,       11.500% 07/01/03 (d)		500,000		50,000
WCI Steel Inc.,       10.000% 12/01/04		665,000		319,200
Wheeling-Pittsburgh Corp.,       9.250% 11/15/07 (d)		2,000,000		40,000
				1,694,400
Printing & Publishing – 1.2%
PriMedia, Inc.,       8.875% 05/15/11		425,000		378,250
Von Hoffman Corp.,       10.250% 03/15/09 (a)		$   495,000		$       517,275
				895,525
Rubber & Plastic – 0.5%
Applied Extrusion Technologies, Inc.,       10.750% 07/01/11 (a)		400,000		400,000
Stone, Clay, Glass & Concrete – 0.7%
Anchor Glass Container Corp.,       11.250% 04/01/05		500,000		525,000
Transportation Equipment – 3.5%
BE Aerospace, Inc.,       8.875% 05/01/11		575,000		546,250
Collins & Aikman Products Co.:       10.750% 12/31/11 (a)		200,000		208,500
11.500% 04/15/06		510,000		512,550
Dura Operating Corp.:       8.625% 04/15/12 (a)		440,000		457,600
9.000% 05/01/09		175,000		178,500
LDM Technologies, Inc.,       10.750% 01/15/07		510,000		382,500
Lear Corp.,       8.110% 05/15/09		250,000		260,000
				2,545,900
MINING & ENERGY – 6.4%
Oil & Gas Extraction – 6.4%
Benton Oil & Gas Co.,       9.375% 11/01/07		485,000		412,250
Chesapeake Energy Corp.,       8.125% 04/01/11		325,000		326,625
Magnum Hunter Resources, Inc.,       10.000% 06/01/07		925,000		971,250
Mariner Energy, Inc.,       10.500% 08/01/06		690,000		648,600
Petsec Energy, Inc.,       9.500% 06/15/07 (d)		2,000,000		20,000
Pioneer Natural Resources Co.:       7.500% 04/15/12		200,000		201,000
9.625% 04/01/10		280,000		310,800
Pogo Producing Co.,       8.250% 04/15/11		715,000		743,600
Stone Energy Corp.,       8.250% 12/15/11		220,000		224,400
XTO Energy, Inc.,       7.500% 04/15/12		800,000		805,000
				4,663,525

See notes to investment portfolio.

4

Investment Portfolio (continued)

April 30, 2002 (Unaudited)

Corporate Fixed Income Bonds & Notes (continued)		Par		Value
RETAIL TRADE – 1.8%
Food Stores —1.0%
Pathmark Stores,       8.750% 02/01/12		$   200,000		$       207,500
Smithfield Foods, Inc.,       8.000% 10/15/09 (a)		525,000		532,875
				740,375
Miscellaneous Retail – 0.8%
Steinway Musical Instrument,       8.750% 04/15/11		550,000		550,000
SERVICES – 27.4%
Amusement & Recreation – 11.6%
Ameristar Casinos, Inc.,       10.750% 02/15/09		400,000		440,000
Anchor Gaming,       9.875% 10/15/08		400,000		443,000
Argosy Gaming Co.,       10.750% 06/01/09		335,000		371,850
Boyd Gaming Corp.,       9.500% 07/15/07		350,000		367,500
Circus-Circus & Eldorado/Silver Legacy,       10.125% 03/01/12 (a)		375,000		388,125
Coast Hotels & Casinos, Inc.,       9.500% 04/01/09		500,000		526,250
Hollywood Casino Corp.,       11.250% 05/01/07		400,000		444,000
Hollywood Casino Shreveport,       13.000% 08/01/06		900,000		983,250
Hollywood Park, Inc.,       9.500% 08/01/07		1,000,000		985,000
Horseshoe Gaming, L.L.C.,       9.375% 06/15/07		500,000		525,000
Majestic Investor Holdings Capital,       11.653% 11/30/07 (a)		225,000		214,875
Mikohn Gaming,       11.875% 08/15/08 (a)		275,000		270,875
Mohegan Tribal Gaming,       8.000% 04/01/12 (a)		500,000		500,000
Penn National Gaming, Inc.,       11.125% 03/01/08		1,050,000		1,136,625
Regal Cinemas, Inc.,       9.375% 02/01/12 (a)		600,000		624,000
Six Flags, Inc.,       9.500% 02/01/09		275,000		287,375
				8,507,725
Auto Repair Services & Parking – 1.3%
United Auto Group, Inc.,       9.625% 03/15/12 (a)		350,000		364,000
United Rentals, Inc.:       8.800% 08/15/08		$   325,000		$       326,625
9.500% 06/01/08		275,000		281,875
				972,500
Health Services – 10.7%
Alliance Imaging, Inc.,       10.375% 04/15/11		560,000		599,200
AmerisourceBergen Corp.,      8.125% 09/01/08 (a)		330,000		349,800
Bio-Rad Laboratories, Inc.,       11.625% 02/15/07		600,000		669,000
Coventry Health Care, Inc.,       8.125% 02/15/12		525,000		540,750
Dynacare, Inc.,       10.750% 01/15/06		480,000		499,200
HCA, Inc.,       8.750% 09/01/10		670,000		747,017
Insight Health Services Corp.,       9.875% 11/01/11 (a)		675,000		695,250
Magellan Health Services, Inc.:       9.000% 02/15/08		1,240,000		1,054,000
9.375% 11/15/07 (a)		385,000		385,000
Quest Diagnostic, Inc.,       7.500% 07/12/11		500,000		522,900
Radiologix, Inc.,       10.500% 12/15/08 (a)		400,000		416,000
Res-Care, Inc.,       10.625% 11/15/08 (a)		615,000		571,950
United Surgical Partners,       10.000% 12/15/11		400,000		413,000
Vanguard Health Systems,       9.750% 08/01/11 (a)		380,000		400,900
				7,863,967
Hotels, Camps & Lodging – 2.0%
Host Marriott L.L.P.,       9.500% 01/15/07 (a)		800,000		845,000
Starwood Hotels Resorts,       7.875% 05/01/12 (a)		625,000		626,475
				1,471,475
Other Services – 1.8%
HydroChem Industrial Services, Inc.,      10.375% 08/01/07		750,000		562,500
Intertek Finance PLC,       10.250% 11/01/06		750,000		776,250
				1,338,750

See notes to investment portfolio.

5

Investment Portfolio (continued)

April 30, 2002 (Unaudited)

Corporate Fixed Income Bonds & Notes (continued)		Par		Value
TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS & SANITARY SERVICES – 47.1%
Air Transportation – 2.3%
Northwest Airlines, Inc.,       9.875% 03/15/07		$   615,000		$       599,625
U.S. Air, Inc.,       10.375% 03/01/13		1,600,000		1,056,000
				1,655,625
Broadcasting – 5.3%
Advanstar Communications, Inc.,       12.000% 02/15/11		500,000		450,000
Allbritton Communications Co.,       9.750% 11/30/07		600,000		633,000
Cumulus Media, Inc.,       10.375% 07/01/08		225,000		247,500
Emmis Communications,       (e) 03/15/11
(12.500% 03/15/06)		725,000		543,750
LIN Holding Corp.,       (e) 03/01/08
(10.000% 03/01/03)		725,000		667,000
Sinclair Broadcast Group, Inc.,       8.750% 12/15/11 (a)		600,000		628,500
TV Azteca SA de CV,       10.500% 02/15/07		745,000		752,450
				3,922,200
Cable– 12.9%
Adelphia Communications Corp.,       10.875% 10/01/10		250,000		216,250
Cable Satisfaction International, Inc.,       12.750% 03/01/10		970,000		582,000
Charter Communications Holdings L.L.C.:
(e) 04/01/11
(9.920% 04/01/04)		1,925,000		1,347,500
10.000% 04/01/09		500,000		475,000
10.750% 10/01/09		275,000		269,500
11.125% 01/15/11		675,000		668,250
Comcast UK Cable Partners Ltd.,       11.200% 11/15/07		750,000		705,000
Diamond Cable Co.,       10.750% 02/15/07		1,085,000		358,050
EchoStar DBS Corp.,       9.250% 02/01/06		1,265,000		1,309,275
FrontierVision Holdings L.P.,       11.875% 09/15/07		795,000		767,175
Insight Comunication Co., Inc.,      (e) 02/15/11      (12.250% 02/15/06)		770,000		488,950
Northland Cable Television, Inc.,       10.250% 11/15/07		$1,350,000		$    1,120,500
Telewest Communications PLC:       11.000% 10/01/07		2,000,000		1,120,000
11.250% 11/01/08		100,000		57,000
				9,484,450
Communications – 2.9%
Canwest Media, Inc.,       10.625% 05/15/11		500,000		540,000
Quebecor Media, Inc.,       11.125% 07/15/11		925,000		999,000
XM Satellite Radio Holdings, Inc.,       14.000% 03/15/10 (a)		830,000		614,200
				2,153,200
Communications Services – 1.7%
Corus Entertainment, Inc.       8.750% 03/01/12 (a)		200,000		207,500
Crown Castle International Corp.:       (e) 05/15/11
(10.375% 05/15/04)		550,000		341,000
10.750% 08/01/11		250,000		231,250
SBA Communications Corp.,       10.250% 02/01/09		615,000		442,800
				1,222,550
Electric, Gas & Sanitary Services – 5.5%
Allied Waste North America, Inc.:       8.500% 12/01/08		475,000		479,750
10.000% 08/01/09		1,915,000		1,972,450
CMS Energy Corp.:       8.900% 07/15/08		675,000		715,500
9.875% 10/15/07		780,000		854,100
				4,021,800
Electric Services – 3.0%
AES Corp.,       9.500% 06/01/09		800,000		680,000
Calpine Corp.,      8.500% 02/15/11		1,045,000		893,475
PSE&G Energy Holdings,       8.625% 02/15/08 (a)		395,000		396,687
UCAR Finance, Inc.,       10.250% 02/15/12 (a)		235,000		247,925
				2,218,087
Funeral Services – 1.7%
Service Corp. International,       7.700% 04/15/09		875,000		805,000
Stewart Enterprises,      10.750% 07/01/08		400,000		440,000
				1,245,000

See notes to investment portfolio.

6

Investment Portfolio (continued)

April 30, 2002 (Unaudited)

Corporate Fixed Income Bonds & Notes (continued)		Par		Value
TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS & SANITARY SERVICES (continued)
Motor Freight & Warehousing – 0.6%
MTL, Inc.,       10.000% 06/15/06		$1,000,000		$       450,000
Radiotelephone Communications – 7.6%
AirGate PCS, Inc.,       (e) 10/01/09
(13.500% 10/01/04)		399,000		267,330
Alamosa Delaware, Inc.,      12.500% 02/01/11		410,000		350,550
Alamosa PCS Holdings, Inc.,       (e) 02/15/10		250,000		123,750
(12.875% 02/15/05)
Horizon PCS, Inc.:       (e) 10/01/10
(14.000% 10/01/05)		415,000		149,400
13.750% 06/15/11 (a)		415,000		311,250
McCaw International Ltd.       13.000% 04/15/07		500,000		30,000
Microcell Telecommunications, Inc.,       14.000% 06/01/06		1,000,000		550,000
Nextel Communications, Inc.,       9.375% 11/15/09		1,535,000		1,059,150
Nextel International, Inc.:       (e) 04/15/08
(12.125% 04/15/03)		665,000		26,600
12.750% 08/01/10		1,300,000		78,000
Nextel Partners, Inc.:       11.000% 03/15/10		500,000		315,000
11.000% 03/15/10 (a)		90,000		56,700
Partner Communications Co., Ltd.,      13.000% 08/15/10		400,000		388,000
Rogers Cantel, Inc.,       9.750% 06/01/16		450,000		411,750
TeleCorp PCS, Inc.,       (e) 04/15/09
(11.625% 04/15/04)		352,000		315,040
Tritel PCS, Inc.,      10.375% 01/15/11		419,000		465,090
US Unwired, Inc.,       (e) 11/01/09
(13.375% 11/01/04)		950,000		646,000
				5,543,610
Telecommunication – 2.2%
Carrier1 International SA,       13.250% 02/15/09		750,000		30,000
Ono Finance PLC:       13.000% 05/01/09		750,000		330,000
14.000% 02/15/11		875,000		385,000
RCN Corp.,       (e) 10/15/07
(11.125% 10/15/02) (a)		$   750,000		$       178,125
Time Warner Telecom, Inc.:       9.750% 07/15/08		470,000		235,000
10.125% 02/01/11		405,000		202,500
WorldCom, Inc.,       7.750% 04/01/07		500,000		237,500
				1,598,125
Transportation Services - 1.4%
Petroleum Helicopters,       9.375% 05/01/09 (a)		530,000		543,250
William Scotsman, Inc.,       9.875% 06/01/07 (a)		455,000		462,962
				1,006,212
WHOLESALE TRADE – 0.6%
Durable Goods – 0.6%
Playtex Products, Inc.,       9.375% 06/01/11		380,000		404,700
Total Corporate Fixed Income Bonds & Notes
(cost of $110,738,920)				94,966,097

Preferred Stocks – 5.5%		Shares		Value
MANUFACTURING – 0.2%
Printing & Publishing – 0.2%
PriMedia, Inc., Series F,       9.200%		3,000		135,000
TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS & SANITARY SERVICES – 5.3%
Broadcasting – 0.5%
Granite Broadcasting Corp.,       12.750% PIK		680		387,720
Cable – 4.7%
Adelphia Communications Corp., Series B,
13.000%		12,500		887,500
CSC Holdings Ltd.:       11.125% PIK		13,221		1,242,753
11.750% PIK		13,824		1,306,346
				3,436,599
Communications – 0.1%
Dobson Communication Corp.,       12.250% PIK		151		125,747

See notes to investment portfolio.

7

Investment Portfolio (continued)

April 30, 2002 (Unaudited)

Preferred Stocks – 5.5%		Shares		Value
TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS & SANITARY SERVICES (continued)
Telecommunication – 0.0%
XO Communications, Inc.:       13.500% PIK		789		$                  8
14.000% PIK		28,520		285
				293
Total Preferred Stocks
(cost of $8,006,317)				4,085,359

Common Stocks - 0.5% (f)
MINING & ENERGY – 0.3%
Oil & Gas Extraction – 0.3%
Pioneer Natural Resources Co.		8,153		195,590

TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS & SANITARY SERVICES – 0.2%
Pollution Control – 0.1%
EnviroSource, Inc.		10,000		94,033
Telecommunications – 0.1%
AirGate PCS, Inc.		1,826		26,109
Nextel Communications, Inc.,      Class A		6,196		34,140
				60,249
Total Common Stocks
(cost of $896,786)				349,872

Warrants - 0.1% (f)		Units
SERVICES – 0.0%
Amusement & Recreation – 0.0%
Mikohn Gaming,       Expires 08/15/08		275		1,375

TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS & SANITARY SERVICES – 0.1%
Cable – 0.0%
Cable Satisfaction International, Inc.,
Expires 03/01/05		970		6,790
Communications – 0.0%
UbiquiTel Operating Co.,       Expires 04/15/10		525		2,625
XM Satellite Radio Holdings, Inc.       Expires 03/15/10		600		150
				2,775
Telecommunications – 0.1%
Carrier1 International SA,       Expires 02/19/09		347		$                  3
Horizon PCS, Inc.,       Expires 10/01/03		665		13,300
Jazztel PLC,       Expires 02/01/10		350		(g)
MetroNet Communications Corp.,       Expires 08/15/07		250		24,232
Ono Finance PLC,       Expires 05/31/09		925		1,522
				39,057
Total Warrants
(cost of $174,923)				49,997

Short-Term Obligation – 2.7%		Par
Federal National Mortgage Association,       3.780% 05/31/02 (h)
(cost of $1,993,750)		$2,000,000		1,993,750
Total Investments – 138.3%
(cost of $121,810,696) (i)				101,445,075
Other Assets & Liabilities, Net – (38.3)%				(28,102,562)
Net Assets - 100.0%				$  73,342,513

See notes to investment portfolio.

8

Investment Portfolio (continued)

Notes to Investment Portfolio:

	(a)		These securities are exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2002, the value of these securities amounted to $17,065,992 or 23.3% of net assets.

	(b)		Zero coupon bond.

	(c)		This is a foreign security. Par amount is stated in U.S. dollars.

	(d)		These issuers are in default of certain debt covenants. Income is not being accrued.

	(e)		Stepped coupon bond. Currently accruing at zero. Shown parenthetically is the next interest rate to be paid and the date the Fund will begin accruing this rate.

	(f)		Non-income producing.

	(g)		Rounds to less than $1.

	(h)		Rate represents yield at date of purchase.

	(i)		Cost for generally accepted accounting principles is $121,810,696. Cost for federal income tax purposes is $121,020,470. The difference between cost for generally accepted accounting principles and cost on a tax basis is related to amortization/accretion tax elections on fixed income securities.

As of April 30, 2002, the Fund had entered into the following forward currency exchange contracts:

Contracts to Deliver				In Exchange For		Settlement Date		Net Unrealized Depreciation at 4/30/02
EUR		16,000		$14,192		05/20/2002		$(200)
EUR		459,265		407,368		05/20/2002		(5,741)
EUR		121,000		107,397		05/20/2002		(1,442)
								$(7,383)

Acronym		Name
EUR		Euro Dollars
PIK		Payment-In-Kind

See notes to financial statements.

9

Statement of Assets and Liabilities

April 30, 2002 (Unaudited)

Assets:
Investments, at cost		$	121,810,696
Investments, at value		$	101,445,075
Cash			1,435,739
Receivable for:
Investments sold			339,436
Interest			2,631,651
Dividends			6,900
Deferred Trustees'  compensation plan			4,928
Total Assets			105,863,729
Liabilities:
Net unrealized depreciation on forward currency contracts			7,383
Payable for:
Interest			732,613
Investments purchased			580,940
Distributions			623,275
Management fee			56,139
Transfer agent fee			6,251
Bookkeeping fee			3,061
Trustees' fee			689
Deferred Trustees' fee			4,928
Other liabilities			5,937
Notes payable			30,500,000
Total Liabilities			32,521,216
Net Assets		$	73,342,513
Composition of Net Assets:
Paid-in capital		$	143,449,397
Overdistributed net investment income			(298,369	)
Accumulated net realized loss			(49,435,979	)
Net unrealized depreciation on:
Investments			(20,365,621	)
Foreign currency translations			(6,915	)
Net Assets		$	73,342,513
Shares outstanding			20,775,818
Net asset value per share		$	3.53

Statement of Operations

For the Six Months Ended April 30, 2002 (Unaudited)

Investment Income:
Interest		$	5,337,240
Dividends			363,920
Total Investment Income			5,701,160
Expenses:
Management fee			342,417
Bookkeeping fee			18,011
Transfer agent fee			22,868
Trustees' fee			4,134
Reports to shareholders			24,616
Other expenses			45,284
Total Expenses			457,330
Custody earnings credit			(2,107	)
Total Operating Expenses			455,223
Interest expense			1,106,682
Net Expenses			1,561,905
Net Investment Income			4,139,255
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:
Net realized loss on:
Investments			(10,908,562	)
Foreign currency transactions			(10,726	)
Net realized loss			(10,919,288	)
Net change in unrealized appreciation/depreciation on:
Investments			11,518,755
Foreign currency translations			21,202
Net change in unrealized appreciation/depreciation			11,539,957
Net Gain			620,669
Net Increase in Net Assets from Operations		$	4,759,924

See notes to financial statements.

10

Statement of Changes in Net Assets

Increase (Decrease) in Net Assets:		(Unaudited)  Six Months Ended April 30, 2002				Year Ended October 31, 2001
Operations:
Net investment income		$	4,139,255			$	10,377,445
Net realized loss on investments and foreign currency transactions			(10,919,288	)			(22,676,787	)
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			11,539,957				(3,228,586	)
Net Increase (Decrease) from Operations			4,759,924				(15,527,928	)
Distributions Declared to Shareholders:
From net investment income			(4,265,395	)			(11,322,543	)
Return of capital			—				(394,928	)
Total Distributions Declared to Shareholders			(4,265,395	)			(11,717,471	)
Share Transactions:
Distributions reinvested			494,507				1,265,931
Total Increase (Decrease) in Net Assets			989,036				(25,979,468	)
Net Assets:
Beginning of period			72,353,477				98,332,945
End of period (including overdistributed net investment income of $(298,369) and $(1,027,990), respectively)		$	73,342,513			$	72,353,477
Changes in Shares:
Issued for distributions reinvested			137,791				272,635

11

Statement of Cash Flows

For the Six Months Ended April 30, 2002 (Unaudited)

Increase (Decrease) in Cash:
Cash Flows From Operating Activities:
Net investment income		$	4,139,255
Adjustments to reconcile net investment income to  net cash provided by operating activities:
Purchase of investment securities			(29,595,220	)
Proceeds from disposition of investment securities			28,931,190
Sale of short-term investments, net			1,816,168
Net realized loss due to foreign currency transactions			(1,337	)
Decrease in interest receivable			154,594
Decrease in other assets			15,179
Net realized loss from forward currency contracts			(9,389	)
Decrease in receivable for investments sold			825,117
Decrease in payable for investments purchased			(529,559	)
Decrease in accrued expenses and other liabilities			(61,922	)
Net amortization/accretion of income			(695,826	)
Net cash provided by operating activities			4,988,250
Cash Flows From Financing Activities:
Increase in interest payable			68,464
Distributions paid in cash			(3,891,436	)
Net cash used in financing activities			(3,822,972	)
Net increase in cash			1,165,278
Cash:
Beginning of period			270,461
End of period		$	1,435,739

Supplemental disclosure of cash flow information:  Non-cash financing activities not included herein consist of reinvestment of distributions of $494,507.

12

Notes to Financial Statements

April 30, 2002 (Unaudited)

Note 1. Accounting Policies

Organization:

Colonial Intermediate High Income Fund (the "Fund") is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end management investment company. The Fund's investment goal is to seek high current income and total return by investing primarily in lower-rated corporate debt securities. The Fund authorized an unlimited number of shares.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements.

Security Valuation and Transactions:

Debt securities generally are valued by a pricing service based upon market transactions for normal, institutional-size trading units of similar securities. When management deems it appropriate, an over-the-counter or exchange bid quotation is used.

Equity securities generally are valued at the last sale price or, in the case of unlisted or listed securities for which there were no sales during the day, at the current quoted bid price.

Forward currency contracts are valued based on the weighted value of the exchange traded contracts with similar durations.

Short-term obligations with a maturity of 60 days or less are valued at amortized cost.

Investments for which market quotations are not readily available are valued at fair value under procedures approved by the Board of Trustees.

Security transactions are accounted for on the date the securities are purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

The Fund may trade securities on other than normal settlement terms. This may increase the risk if the other party to the transaction fails to deliver and causes the Fund to subsequently invest at less advantageous prices.

Statement of Cash Flows:

Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Statement of Cash Flows. The cash amount shown in the Statement of Cash Flows is the amount included in the Fund's Statement of Assets and Liabilities and represents cash on hand at its custodian bank account and does not include any short-term investments at April 30, 2002.

Federal Income Taxes:

Consistent with the Fund's policy to qualify as a regulated investment company and to distribute all of its taxable income, no federal income tax has been accrued.

At October 31, 2001, capital loss carryforwards available (to the extent provided in regulations) to offset future realized gains were as follows:

Year of Expiration		Capital Loss Carryforwards
2003		$	2,102,577
2007			3,282,077
2008			10,437,671
2009			22,694,029
		$	38,516,354

Expired capital loss carryforwards, if any, are recorded as a reduction of paid-in capital.

Interest Income, Debt Discount and Premium:

Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date. Original issue discount is accreted to interest income over the life of a security with a corresponding increase in the cost basis.

The value of additional securities received as an interest payment is recorded as income and as the cost basis of such securities.

Effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The cumulative effect of this accounting change did not impact total net assets,

13

Notes to Financial Statements (continued)

April 30, 2002 (Unaudited)

but resulted in a $855,761 increase in cost of securities and a corresponding $855,761 increase in net unrealized depreciation, based on securities held by the Fund on November 1, 2001.

The effect of this change for the six months ended April 30, 2002 was to increase net investment income by $100,158, increase net unrealized appreciation by $65,535, and increase net realized losses by $165,693. The Statement of Changes in Net Assets and the Financial Highlights for prior periods have not been restated to reflect this change.

Distributions to Shareholders:

Distributions to shareholders are recorded on the ex-date.

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

Foreign Currency Transactions:

Net realized and unrealized gains (losses) on foreign currency transactions includes gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends and interest income and foreign withholding taxes.

The Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) from investments.

Forward Currency Contracts:

The Fund may enter into forward currency contracts to purchase or sell foreign currencies at predetermined exchange rates in connection with the settlement of purchases and sales of securities. The Fund may also enter into forward currency contracts to hedge certain other foreign currency denominated assets. The contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contracts. All contracts are marked-to-market daily, resulting in unrealized gains (losses) which become realized at the time the forward currency contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. Forward currency contracts do not eliminate fluctuations in the prices of the Fund's investments. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. Risks may also arise if counterparties fail to perform their obligations under the contracts.

Other:

The Fund's custodian takes possession through the federal book-entry system of securities collateralizing repurchase agreements. Collateral is marked-to-market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund. The Fund may experience costs and delays in liquidating the collateral if the issuer defaults or enters bankruptcy.

Note 2. Fees and Compensation Paid to Affiliates

Management Fee:

Colonial Management Associates, Inc. (the "Advisor") is the investment advisor of the Fund and furnishes accounting and other services and office facilities for a monthly fee equal to 0.65% annually of the Fund's average daily net assets.

In addition, the Fund shall pay the Advisor monthly a fee equal to 20% of the Fund's monthly leverage income, however, if the Fund's monthly leverage income is less than zero then the Advisor shall pay the Fund 20% of the Fund's monthly leverage income. For the six months ended April 30, 2002, the fee paid to the Advisor under this agreement amounted to $104,738, which represents 0.28% annually of the Fund's average daily net assets.

Bookkeeping Fee:

The Advisor is responsible for providing pricing and bookkeeping services to the Fund under a Pricing and Bookkeeping Agreement. Under a separate

14

Notes to Financial Statements (continued)

April 30, 2002 (Unaudited)

agreement (the "Outsourcing Agreement"), the Advisor has delegated those functions to State Street Bank and Trust Company ("State Street"). The Advisor pays fees to State Street under the Outsourcing Agreement.

Under its pricing and bookkeeping agreement with the Fund, the Advisor receives from the Fund an annual flat fee of $10,000, paid monthly, and in any month that the Fund's average daily net assets are more than $50 million, a monthly fee equal to the average daily net assets of the Fund for that month multiplied by a fee rate that is calculated by taking into account the fees payable to State Street under the Outsourcing Agreement.

Other:

The Fund pays no compensation to its officers, all of whom are employees of the Advisor or its affiliates.

The Fund's Independent Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Fund's assets.

The Fund has an agreement with its custodian bank under which $2,107 of custody fees were reduced by balance credits for the six months ended April 30, 2002. The Fund could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement.

Note 3. Portfolio Information

Investment Activity:

For the six months ended April 30, 2002, purchases and sales of investments, other than short-term obligations, were $29,574,832 and $29,096,833, respectively.

Unrealized appreciation (depreciation) at April 30, 2002, based on cost of investments for federal income tax purposes, was:

Gross unrealized appreciation		$	3,348,702
Gross unrealized depreciation			(22,924,097	)
Net unrealized depreciation		$	(19,575,395	)

Other:

There are certain additional risks involved when investing in foreign securities that are not inherent with investments in domestic securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or the imposition of other foreign governmental laws or restrictions.

The Fund may focus its investments in certain industries, subjecting it to greater risk than a fund that is more diversified.

Note 4. Loan Agreement

At April 30, 2002, the Fund had two term loans and a revolver loan outstanding with Bank of America NA, totaling $30,500,000. These loans are comprised of a $13,700,000 term loan which bears interest at 7.74% per annum, due June 12, 2003, a $7,700,000 term loan which bears interest at 6.84% per annum, due June 13, 2002 and a $9,100,000 revolver loan which bears interest at 6.75% per annum, due June 13, 2002. The average daily loan balance was $30,500,000 at a weighted average interest rate of 7.22%. The Fund is required to maintain 300% net asset coverage with respect to the loans.

15

Financial Highlights

Selected data for a share outstanding throughout each period is as follows:

		(Unaudited) Six Months Ended April 30,				Year Ended October 31,
		2002				2001				2000				1999				1998				1997
Net Asset Value, Beginning of Period		$	3.51			$	4.83			$	5.97			$	6.20			$	7.27			$	6.89
Income from Investment Operations:
Net investment income			0.20(a	)			0.51(a	)			0.67				0.70				0.70				0.70
Net realized and unrealized gain (loss) on investments and foreign currency			0.03(b	)			(1.26	)			(1.10	)			(0.23	)			(1.08	)			0.38
Total from Investment Operations			0.23				(0.75	)			(0.43	)			0.47				(0.38	)			1.08
Less Distributions Declared to Shareholders:
From net investment income			(0.21	)			(0.55	)			(0.69	)			(0.70	)			(0.69	)			(0.70	)
In excess of net investment income			—				—				(0.02	)			—				—				—
Return of capital			—				(0.02	)			—				—				—				—
Total Distributions Declared to Shareholders			(0.21	)			(0.57	)			(0.71	)			(0.70	)			(0.69	)			(0.70	)
Net Asset Value, End of Period		$	3.53			$	3.51			$	4.83			$	5.97			$	6.20			$	7.27
Market price per share		$	3.51			$	3.49			$	4.63			$	5.63			$	6.81			$	7.56
Total return — based on market value (c)			6.51	%(d)			(14.26	)%			(6.12	)%			(7.89	)%			(0.74	)%			16.97	%
Ratios to Average Net Assets:
Operating expenses (e)			1.24	%(f)			1.31	%			0.92	%			0.89	%			0.88	%			0.89	%
Interest and amortization of deferred debt issuance expenses			3.01	%(f)			2.98	%			2.79	%			2.48	%			2.11	%			1.96	%
Total expenses (e)			4.25	%(f)			4.29	%			3.71	%			3.37	%			2.99	%			2.85	%
Net investment income (e)			11.26	%(b)(f)			11.96	%			11.88	%			10.82	%			9.70	%			9.63	%
Portfolio turnover rate			30	%(d)			52	%			42	%			44	%			69	%			92	%
Net assets, end of period (000's)		$	73,343			$	72,353			$	98,333			$	121,018			$	124,480			$	107,774

	(a)		Per share data was calculated using average shares outstanding during the period.

	(b)		As required, effective November 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing and accreting premium and discount on all debt securities. The effect of this change, for the six months ended April 30, 2002, was to increase the ratio of net investment income to average net assets from 10.99% to 11.26%. The impact to the net investment income and net realized and unrealized gain per share was less than $0.01. Per share data and ratios for periods prior to April 30, 2002 have not been restated to reflect this change in presentation.

	(c)		Total return at market value assuming all distributions reinvested at the lower of net asset value or closing market value, and excluding brokerage commissions.

	(d)		Not annualized.

	(e)		The benefits derived from custody credits and directed brokerage arrangements, if applicable, had no impact, except for the year ended 1997 which had a 0.01% impact.

	(f)		Annualized.

16

Financial Highlights (continued)

Selected data for a share outstanding throughout each period is as follows:

		Year Ended October 31,
		1996				1995				1994				1993				1992
Net Asset Value, Beginning of Period		$	6.62			$	6.28			$	6.92			$	6.43			$	6.29
Income from Investment Operations:
Net investment income			0.70				0.70				0.69				0.71				0.77
Net realized and unrealized gain (loss) on investments and foreign currency			0.26				0.34				(0.58	)			0.50				0.15
Total from Investment Operations			0.96				1.04				0.11				1.21				0.92
Less Distributions Declared to Shareholders:
From net investment income			(0.69	)			(0.70	)			(0.75	)			(0.72	)			(0.78	)
Net Asset Value, End of Period		$	6.89			$	6.62			$	6.28			$	6.92			$	6.43
Market price per share		$	7.13			$	6.88			$	5.75			$	6.63			$	6.25
Total return - based on market value (a)			14.62	%			33.00	%			(2.80	)%			17.89	%			17.39	%
Ratios to Average Net Assets:
Operating expenses (b)			0.98	%			0.95	%			0.97	%			1.00	%			1.00	%
Interest and amortization of deferred debt issuance expenses			2.07	%			1.94	%			1.91	%			2.66	%			3.24	%
Total expenses (b)			3.05	%			2.89	%			2.88	%			3.66	%			4.24	%
Net investment income (b)			10.11	%			10.76	%			10.40	%			10.62	%			11.98	%
Portfolio turnover rate			92	%			92	%			160	%			135	%			78	%
Net assets, end of period (000's)		$	99,925			$	93,984			$	87,519			$	95,164			$	87,149

	(a)		Total return at market value assuming all distributions reinvested at the lower of net asset value or closing market value, and excluding brokerage commissions.

	(b)		The benefits derived from custody credits and directed brokerage arrangements, if applicable, had no impact.

17

Financial Highlights (continued)

Loan Agreement Asset Coverage Requirements

Date		Total Amount Outstanding				Asset Coverage Per $1,000 of Indebtedness
04/30/2002*		$	30,500,000			$	3,405
10/31/2001			30,500,000				3,372
10/31/2000			47,300,000				3,079
10/31/1999			47,300,000				3,558
10/31/1998			47,300,000				3,632
10/31/1997			27,400,000				4,933
10/31/1996			27,400,000				4,647
10/31/1995			27,400,000				4,430
10/31/1994			27,400,000				4,194
10/31/1993			27,400,000				4,473
10/31/1992			27,400,000				4,190

	*		(Unaudited)

18

Shareholder Meeting Results

Results of Annual Meeting of Shareholders

On May 22, 2002, the Annual Meeting of Shareholders of the Fund was held to conduct a vote for or against the approval of the following item listed on the Fund's Proxy Statement for said Meeting. On March 1, 2002, the record date for the Meeting, the Fund had 20,723,717 shares outstanding. The votes cast were as follows:

Proposal 1. Election of Directors:		For		Withheld
Richard W. Lowry		18,050,382		482,151
William E. Mayer		18,010,777		521,756
Charles R. Nelson		18,053,408		479,125

19

Transfer Agent

Important Information About This Report

The Transfer Agent for Colonial Intermediate High Income Fund is:

PFPC,
P.O. Box 8030
Boston, MA 02266-8030
1-800-331-1710

The fund mails one shareholder report to each shareholder address. Shareholders can order additional reports by calling 800-345-6611. In addition, representatives at that number can provide shareholders information about the fund.

Financial advisors who want additional information about the fund may speak to a representative at 800-426-3750.

Semiannual Report:
Colonial Intermediate High Income Fund

COLONIAL INTERMEDIATE HIGH INCOME FUND Semiannual Report

110-03/555J-0402 (06/02) 02/985